Management Consulting

Aon assisted NN Life, the largest insurance company in the Netherlands, with a €13.5 billion longevity transaction that encompassed a portfolio of annuity policies for over 200,000 pensioners and dependants. This strategic move was aimed at reducing NN Life’s exposure to longevity risk and enhancing its capital position in compliance with Solvency II regulations. To address the specific challenges faced by NN Life, Aon provided tailored solutions that included advice on portfolio-specific best estimate longevity assumptions. This was achieved by integrating Aon’s Demographic Horizons Netherlands postcode mortality model with NN Life’s extensive and high-quality mortality experience dataset. Aon also facilitated a broking process, which involved guiding NN Life on pricing strategies and negotiating longevity assumptions with multiple global reinsurers. Additionally, Aon developed a high-resolution transaction cashflow model to ensure consistent pricing and serve as a reference for the legal documentation. The results of Aon's involvement were significant. The well-orchestrated process led to effective market engagement, allowing NN Life to secure favorable pricing for the longevity block. Aon’s expertise in the reinsurance market and their analytical tools provided a solid foundation for the transaction, ultimately simplifying a complex project for NN Life. This collaboration not only mitigated longevity risk for NN Life but also reinforced its financial stability in a competitive insurance landscape.